SoftBank jumps 10%, shaking off record loss
13/05/2022 03:59
By Sam Nussey
TOKYO, May 13 (Reuters) - Shares in SoftBank Group Corp
9984.T gained 10% in morning trading in Tokyo on Friday as the
market shook off a record loss, which had been widely flagged,
at its Vision Fund unit.
"Alibaba remains the anchor asset. As long as that company
doesn't deteriorate, a trading range for SoftBank between 4,500
and 5,500 yen is probably where it will be," said Redex Research
analyst Kirk Boodry.
The bounce followed a late-day rally in U.S. stocks
overnight, with the S&P 500 .SPX and Nasdaq Composite .IXIC
closing roughly flat. Tech stocks including flea market app
operator Mercari 4385.T and e-commerce-to-payments company
Rakuten 4755.T also rose in Tokyo.
The rebound came as SoftBank founder and CEO Masayoshi Son
on Thursday pledged to scale back investing activity and
preserve cash as the market downturn hammered his tech
portfolio.
"When it rains, you open an umbrella," the billionaire told
a news conference, pointing to SoftBank's $23 billion cash
position and 20.4% loan-to-value ratio, which compares net debt
with the equity value of holdings.
Son's retrenchment, which follows a drop off in IPO activity
that had allowed SoftBank to recycle funds into new investments,
came even as he outlined his belief that valuations would
continue to climb in the longer term.
"Several investors observed that (Softbank) making
aggressive investments in up-markets and then becoming defensive
during down-markets makes it essentially a momentum-investor,"
Jefferies analyst Atul Goyal wrote in a client note.
(Reporting by Sam Nussey; Editing by Bradley Perrett)
((sam.nussey@tr.com;))